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Wednesday, May 27, 2015

Growing Your Business Through Customer Referrals

A small business constantly struggles with building up their customer base. Regardless of the methods that are used, it is hard for them to gather a lot of new clients. One method can be an array of different marketing techniques. Another one would be cold calling your target client. You can even use direct mailings to potential client’s homes. Yet there is an untapped resource for many businesses. Failing to take advantage of current client referrals is a huge mistake often made.

The back bone of your business development plan can be customer referrals if you use them in the right way. The best advertisement for your business is your current customers who are pleased. You can drastically grow the amount of new customers your business generates if you are able to start getting referrals through you current customer base. It is difficult to figure out a way for you to generate these referrals in an efficient method.

You can efficiently generate current customer referrals in a few different ways if you think of them. If a current customer of yours refers a new customer, you can offer a bonus or special offer to them as a reward. The perk can be given to the referrer and the referred. A $10 bonus can be offered to the new customer that you acquired and then you can turn around and give the same thing to your current client. They only drawback to this type of method is the added cost involved.

The normal cost of a new customer is something you must weight though. This new customer cost you how much time to gather? How much marketing was required to bring them in? Both the time you spend and the marketing you develop cost you money. Often times this money will add up to be equal or greater than that of offering a referral bonus. A happy new customer is one benefit of a referral bonus and so is the fact that you are making your current customer happy as well.